LINE ITEMS
Here’s to hoping this year is better The national taxpayer advocate’s mid-year report to Congress was released last June, and the information about the 2021 filing season was a doozy. (If you spent any amount of time on the phone with the IRS, you don’t need a report to tell you that.) While there were some bright spots (the IRS processed a similar amount of returns as in other filing seasons), there were clear pain points. After all, only 7% of callers on the accounts management telephone lines spoke to an assistor. The 1040 line, the number most frequently called by taxpayers, only had a 3% answer rate. National Taxpayer Advocate Erin M. Collins identified several ways the IRS could use its lessons learned from 2021 to improve, including: • Prioritizing the development of accessible, robust online accounts. The IRS offers an online account option for individual taxpayers, but its usefulness is limited. The Taxpayer Advocate Service (TAS) recommends that taxpayers be given the option of interacting online with the IRS for all common transactions. TAS also recommended that tax practitioners be given access to online accounts on behalf of their clients and that the IRS prioritize providing this service. • Expand customer callback technology to all IRS tollfree telephone lines. The IRS offers this option on some of its telephone lines, but not on most, including the highvolume lines.
Read this before implementing blockchain If your company or a client is considering implementing blockchain technology, make sure you’ve evaluated the risks. A resource released last year, “Blockchain Risk: Considerations for Professionals” documents, describes, and provides context around specific risk related to blockchain implementation and operation. The publication is organized as a risk matrix and can help CPAs, IT auditors, cybersecurity professionals and leaders to understand the unique risks of the blockchain space. The American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA) partnered with ISACA to develop the whitepaper. Find it at tinyurl.com/Blockchain-Risks.
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DISCLOSURES
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WINTER 2022
• Reduce barriers to e-filing tax returns. Some taxpayers prefer to file on paper, but many taxpayers file on paper because they are prevented from e-filing. TAS recommends the IRS address limitations so all taxpayers who wish to e-file their returns may do so. • Utilize scanning technology for individual income tax returns prepared electronically but submitted on paper. When taxpayers file returns on paper, IRS employees must manually transcribe the data line-byline into IRS systems. In 2020, the IRS received about 17 million individual income tax returns and millions of business and other tax returns on paper. Scanning technology would reduce errors and save time. • Expand digital acceptance and transmission of documents and digital signatures. During the pandemic, the IRS issued temporary guidance to authorized employees to accept and transmit documents related to the determination or collection of a tax liability by email using an established secured messaging system. TAS recommends the IRS make these temporary solutions permanent and continue to explore and prioritize additional digital communication options. The yearly report comes out each January and was not available at press time. Check out taxpayeradvocate.irs.gov for more information and to find all reports.
